Malaysian banks’ profitability remained stable in Q1: RAM Ratings

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Malaysian banks’ profitability remained stable in Q1: RAM Ratings
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PETALING JAYA: Malaysian banks’ first quarter 2024 (Q1’24) financial results showed steady profitability, in line with RAM Ratings’ expectations. In a...

Malaysian banks’ first quarter 2024 financial results showed steady profitability, in line with RAM Ratings’ expectations.

RAM Ratings said business loan expansion experienced a resurgence in late 2023, continuing into Q1’24 and this was in line with the recovery in exports driven by the emerging semiconductor upturn. Net interest margins were significantly compressed in 2023 due to the elevated cost of funds from the upward repricing of deposits following multiple rate hikes and heightened deposit competition.

On the asset quality front, the system’s gross impaired loan ratio inched down marginally to 1.62% .

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